If the nominal rate of interest is 10.5 percent, and the ...

[audragclark]

If the nominal rate of interest is 10.5 percent, and the inflation rate is 4.3 percent, what is the real rate of interest?
 a. 3.0 percent
 b. 4.3 percent
 c. 6.2 percent
 d. 10.5 percent

Question 2

Given a fixed nominal interest rate on a loan, unanticipated deflation:
 a. decreases the burden of paying off the loan.
 b. increases the burden of paying off the loan.
 c. does not alter the burden of paying off the loan.
 d. has an indeterminate effect on the burden of paying off the loan.

[LegendaryAnswers]

Answer to Question 1

c

Answer to Question 2

b

[audragclark]

Excellent

[anyusername12131]

Thanks for the timely response, appreciate it